The Straits Times Index (SGX: ^STI) added 1.3% for the week. However, one company differed widely in its performance when compared to the Singapore stock market in general. And that company is Sembcorp Marine Ltd (SGX: S51), whose share price slumped 6% to S$1.42.
Investors offloaded shares in Sembcorp Marine after it announced on Wednesday that the Brazilian authorities have executed a search warrant on Estaleiro Jurong Aracruz Ltda (EJA), a subsidiary of Sembcorp Marine in Brazil. The warrant was linked to the on-going investigations related to Operation Car Wash in the country. Operation Car Wash is Brazil’s biggest anti-graft crackdown that has already hit Sembcorp Marine’s rival Keppel Corporation Limited (SGX: BN4).
Sembcorp Marine said that it understands that the search was related to investigations against Guilherme Esteves de Jesus (GDJ), a former consultant engaged by EJA. GDJ has been arrested by the Brazilian Federal Police and is now facing ongoing criminal charges. Sembcorp Marine added that the current investigations also involve Martin Cheah Kok Choon, the former president of EJA.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.